Zero per cent deals ‘can help consolidate debt’

There has been an increase in longer debt transfer deals, an industry analyst has claimed.

Michelle Slade from Moneyfacts said that the amount of zero per cent credit card deals available for over 12 months has risen by 11.4 per cent.

Balance transfer deals can be an effective way to handle debt management, she claimed.

“This is great news for consumers as they can have longer to reduce their debt and as a result less marks on their credit file,” she added.

Ms Slade also stated that switching to one of these deals to consolidate debt could cut the time it takes to repay the balance and reduce overall interest.

According to a report from the company, zero interest deals for a year or more made up 47.7 per cent of the market in August.

Meanwhile, M&S Money has launched a new credit card offering ten months interest-free on shopping transactions.

By Jamie Price